Determine the pump economic life

Assignment Help Business Economics

Reference no: EM131809912

An electric oil pump's first cost is $45,000, and the interest rate is 10%. The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life. (Answer: 3 years)

Reference no: EM131809912

Questions Cloud

Which are the relevant costs for the old machine : The cost to remove the old machine is $2000. Which are the relevant costs for the old machine?

Determine the economic life of the press : The salvage value is expected to decrease by $20,000 each year to a value of zero. Using an interest rate of 8%, determine the economic life of the press.

Calculate the index used that yielded the results : Oasis Company has used the dollar-value LIFO method for inventory cost determination. Calculate the index used for 2015 that yielded the above results.

Determine the costs per equivalent unit of direct materials : Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places.

Determine the pump economic life : The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life.

Firms can achieve overall-organization-wide competitive : Firms can achieve overall, organization-wide competitive advantage through the following strategies:

Determine the marginal cost to extend service : Determine the marginal cost to extend service for each of the next 4 years if the MARR is 8%. (Answer: MC1 = $4050)

Determine the marginal cost to extend service : Determine the marginal cost to extend service for each of the next 6 years if the MARR is 12%. If a new drill press has an EAC of $7000, when should the drill p

Cost of beginning work in process inventory : Cost of beginning work in process inventory completed in September. Costs per equivalent unit of direct materials and conversion.

User Account

All Pages